TVI Pacific Inc. (TSXV: TVI) (OTC Pink: TVIPF) (“TVI” or “the Company”) announces a voluntary suspension of mining operations at the Siana Gold Mine (“Siana”) as a result of an unforeseen failure of the embankment of Tailings Storage Facility 3 (TSF3, the “Facility”) that occurred on May 11, 2024.  Siana is owned and operated by Greenstone Resources Corporation (“GRC”), a 100% owned subsidiary of the Philippine corporation in which TVI holds a 30.66% interest, TVI Resource Development Phils, Inc. (“TVIRD”).  Siana is located in Tubod, Surigao del Norte, approximately 35 kilometers from Surigao City and near to Lake Mainit in the southern Philippines island of Mindanao.

GRC has voluntarily suspended its mining operation to closely examine what has transpired and to ensure the absolute safety of the neighboring communities.  There has been no reported loss of life or injury to GRC personnel or members of the immediate community.  The community had been fully evacuated and safely housed in the Tubod and Mainit muncipalities prior to the failure of the Facility.  A total of 29 community homes have been damaged by the subsequent mudslide that occurred and GRC has taken precautionary measures to evacuate 938 residents until such time that the GRC technical consultants and Safety & Health department, together with the Department of Environment and Natural Resources` Mines and Geosciences Bureau (“DENR-MGB”), declare the area safe for residents to return back to their homes.

The incident follows a series of earthquakes that occurred on the day of the incident, the strongest of which was a magnitude 4.0 quake in nearby Hinatuan, Surigao del Sur.  GRC shall extensively investigate the extent to which this may have contributed to the failure of the Facility together with months of torrential intermittent rains that have caused several landslides on the island of Mindanao due to the repeated expansion and contraction of topsoil.

The Facility was practically not utilized by GRC prior to GRC being acquired by TVIRD in November 2021 and the resumption of operations in December 2022.  The Facility was dewatered at that time to prevent seepage into its embankment prior to being backfilled with waste material to reinforce the structure as part of its complete rehabilitation.  GRC has relied primarily on the newly built Tailings Storage Facility 6 (“TSF6”) that was designed, constructed and completed in the fourth quarter of 2023 together with a recognized engineering firm.  Permission of the TSF Engineer was given to start utilizing TSF6 for mill tails deposition with the commencement of soft commissioning of the Process Plant in December 2022.

GRC has reported that there has been no damage incurred to the current mining operations, including the mine infrastructure and equipment, the active TSF (TSF6) or the mine itself.  Milling operations are currently continuing using the existing run-of-mine stockpile.

GRC personnel are continuing to monitor daily weather conditions in the area and movements on the Facility so as to readily take any further preventative measure that may be required.    GRC has committed also to rebuild all homes damaged by the incident and to provide all necessary assistance to the affected community.  In doing so, GRC has reaffirmed its commitment to a resilient community and will continue to ensure that all mitigating measures are in place to ensure its safety.  Moreover, GRC is dedicated to a continuation of work with the host local government units, the Provincial Disaster Risk Reduction and Management Office and the DENR-MGB for the overall safety and sustainability of all its beneficiary communities.

The Company commends GRC`s first responders and barangay officials for their proactiveness to protect the community in advance of the incident.  The Company recognizes that TVIRD received and has continued to receive various environmental and safety awards for its exceptional performance, the most recent of which included the Platinum Achievement Award in the Surface Mining Operation category and runner-up for the Safest Surface Mining Operation Award by the Presidential Mineral Industry Environment Award Committee, awarded in relation to operations at Siana.